The USD/CAD currency pair continues to strengthen, trading around 1.3810 during the Asian trading session on Wednesday. This marks the fourth consecutive session of gains for the pair, driven by the weakening Canadian Dollar (CAD) as it grapples with declining oil prices. The correlation between the CAD and oil prices is notable, given Canada's status as a major oil exporter.
As oil prices slide, the exchange rate reflects a broader market sentiment that favors the U.S. dollar (USD). This trend suggests that investors are seeking safety in the face of fluctuating commodity prices. With the USD maintaining its position above the 1.3800 level, market participants will be closely monitoring further developments in oil markets and their potential impact on the CAD.
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Data Source: FX Killer Analysis Team Updated: 2026-01-07 03:28
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.